I lent £300 to my sister in July of 2011 as she was going on holiday and needed money as she would be leaving before she got paid from her job. She has since paid back, very infrequently, the sum of £40 in cash over the two years.
We didn't sign any written agreement, but both my father and mother were aware of the loan.

I've asked frequently over the space of this time for repayment, but its has only come twice in the form of £20 in cash. When confronting her recently she disputes the amount she owes and has now told me that she has no intention of repaying the rest of the money.

As such I am considering going to the small claims court. I'm wondering how likely I would be to win without any form of written contract and limited evidence.

The only things I can think of where that the money was withdrawn from my account via cash point by her and shows up in my bank account statement as -£300 on the relevant date. I also assume I would have my parents as witnesses should it come to that.

I realise going to court with family seems a drastic measure, but it is my last resort to recover what is a substantial amount of money in my case. What would you advise in this situation?

You both need proof, and that isn't just parents who are aware. Did they see any part of the transaction?

If you go to Court, as I said, you need proof of withdrawals, conversations, whatever else you had. She is disputing the total amount, not the total loan? If she disputes the loan she has made payments, which proves there was a loan. Disputing the amount of the loan is more complicated.

If you are asking for personal advice, no, I would not sue my sister.

You both need proof, and that isn't just parents who are aware. Did they see any part of the transaction?

If you go to Court, as I said, you need proof of withdrawals, conversations, whatever else you had. She is disputing the total amount, not the total loan? If she disputes the loan she has made payments, which proves there was a loan. Disputing the amount of the loan is more complicated.

If you are asking for personal advice, no, I would not sue my sister.

They didn't see the transaction, it was a case of me giving her my card and she then went and took out the money from a cash point.

When I most recently spoke to her about beginning repayment she began claiming that she didn't owe what I told her she did, she then claimed she has no intent of repaying now. So if she would dispute the amount, or even the existence of the loan I am unsure. I believe I would need to send a final letter to her detailing my intent.

While she may dispute the loan I have no proof she has repaid me anything so far, as it was through cash that she did.

I really don't think I have much proof of conversations, most conversing was done in person, as was the loan itself.

I guess the only realistic proof I have that this loan even exists are my parents.

I appropriate your personal advice however this is a long standing issue, and this money even if owed by family is substantial to me.

I don't like personal advised on the legal boards. That isn't what is usually asked. However, I was responding to: "I realise going to court with family seems a drastic measure, but it is my last resort to recover what is a substantial amount of money in my case. What would you advise in this situation?"

Thus, my advice!

Legally it's your word against hers. If your parents have personal knowledge, yes, they are your witnesses.

People DO sue family members over loans all the time. Some win, some lose, and it isn't always based on proof. Sometimes it's just whether the judge thinks you look neat and respectful of the court, and don't raise your voice or talk to the other party.
Winning doesn't mean collection on the spot. Many ignore the judgment, and it takes more fees, sometimes more than once, to finally collect.
Ask your parents to adjust their wills...

- and expect this to blow the family apart. Would I ask my parents to take a side? No. But that's just me. Your parents and you will be on this side of the Courtroom - and she will be on that side.

Why did she borrow from you and not your parents?

I'm not sure of the exchange, but isn't 40 pounds about $80 American?